Chief Risk Officer Roundtable

Transcription

1 Chief Risk Officer Roundtable

2 Agenda Part 1: North American CRO Council Part 2: Financial Services CRO Discussion Mike Mahaffey Nationwide Mike Temple Unum Group Betsy Ward MassMutual Moderator: Mark Scanlon Towers Watson Barry Franklin Zurich Financial Services Bob Mark Black Diamond, Inc. Hilmar Schaumann Fortress Investment Group Walter Smiechewicz First Niagara Financial Group Moderator: Mark Abbott Guardian Life 2

3 Overview of the North American CRO Council Panel discussion at the ERM Symposium Washington, DC April 18-20, 2012

4 Introduction to the CRO Council Mission The North American CRO Council is a professional risk management group that seeks to develop and promote sound practices in risk management throughout the insurance industry Council members represent Chief Risk Officers of leading insurers based in North America, who as a group, aim to provide thought leadership and direction on the advancement of risk management and risk-based solvency and liquidity assessments Formation Developed and provisionally organized in 2010 Founding membership and structure formalized in Q

5 CRO Council Membership Membership Criteria Physical headquarters in United States, Canada, or Bermuda Global insurance revenues of >$6B; major operations in North America CRO (or equivalent) with enterprise responsibility Economic risk / capital modeling commitment Member Companies 11 of the 15 largest North American Life insurers 12 of the 15 largest North American P&C insurers Operational Support Anti-trust and governance counsel provided by Dewey & LeBoeuf LLP Secretariat support provided by Towers Watson 5

6 CRO Council Members Company CRO Company CRO ACE Group Sean Ringsted New York Life Gideon Pell American Family Mutual Mary Theilen * Northwestern Mutual Gary Poliner American International Group Sid Sankaran Pacific Life Hank McMillan Allstate Steve Verney Principal Financial Greg Elming Chubb Group Joel Aronchick Progressive Sara Stehlik CNA Financial Mark Verheyen Prudential Financial Helen Galt Genworth Financial Michel Perreault Reinsurance Group of America Michael Stein Great-West Lifeco Alex Guertin State Farm Diane Kerr Guardian Life Michael Slipowitz Sun Life Mike Stramaglia The Hartford Robert Rupp TIAA-CREF Stephen Gruppo Lincoln Financial Group Travelers William Hannon Manulife Financial Rahim Hirji Unum Group Mike Temple MassMutual Elizabeth Ward USAA Torben Ostergaard Nationwide Michael Mahaffey XL Capital Jacob Rosengarten 6

7 CRO Council 2012 Working Group Structure Chair Mahaffey Vice Chair Ward Executive Committee Mahaffey Ward Stein Committee Membership Ringsted Aronchick Galt (C) Verney (C) Ringsted (C) Galt (C) Guertin Stein Galt Gruppo Pell Aronchick Elming Hirji Verney Ward Kerr Mahaffey Kerr Mahaffey Perreault Stramaglia Elming Hirji Ostergaard Pell McMillan Ringsted McMillan Poliner Ostergaard Rupp Ward McMillian Slipowitz Poliner Rosengarten Slipowitz Stehlik Rupp Stein Verheyen Rupp Verheyen STATE FEDERAL INT L RATING EMERGING MODELING Administration External Affairs Sound Practices 7

8 Key activities since inception Responses on Risk Management Related Industry Issues Rating agency: Standard and Poor s Request for Comment on Level III ECM Reviews Regulatory: NAIC Request for Comment on ORSA Guidance Manual Federal Insurance Office (FIO) Request for Comment on Modernizing the System of US Insurance Regulation IAIS Request for Comment on Risk Management Assessment for Internationally Active Insurance Groups Interaction with Industry Stakeholders Rating agency meetings (A.M. Best, Fitch, Moody s, S&P) NAIC ERM Education (7/11) Group Solvency Issues Working Group (10/11) Federal Reserve ERM Education (11/11) 8

9 CRO Council perspectives on ERM This depiction reflects a consensus view of CRO Council members Not all have adopted approaches as presented Variations reflect meaningful differences in products, markets, strategies, managements, and cultures It is also important to differentiate between aspirational goals for ERM, and common ERM practices as implemented today Proportionality is a key consideration and each insurer is at a different point in the ERM journey Risk measurement Link to business strategy Capital Management Risk appetite and limits Identify and assess risks Risk Culture and Governance Stress and Scenario Monitoring and testing reporting 9

10 CRO Council Contact Information The North American CRO Council welcomes the opportunity to continue to work with other stakeholders in the ongoing development and promotion of sound practices in risk management throughout the insurance industry Michael W. Mahaffey Towers Watson 10

11 Agenda Part 1: North American CRO Council Part 2: Financial Services CRO Discussion Mike Mahaffey Nationwide Mike Temple Unum Group Betsy Ward MassMutual Moderator: Mark Scanlon Towers Watson Barry Franklin Zurich Financial Services Bob Mark Black Diamond, Inc. Hilmar Schaumann Fortress Investment Group Walter Smiechewicz First Niagara Financial Group Moderator: Mark Abbott Guardian Life 11